Fraud

Court of Appeal finds subsequent events should not be taken into account to reduce defrauded claimant’s damages

The Court of Appeal has held that a defrauded purchaser's damages should not be reduced on the basis that, as matters transpired, the purchaser was not as badly off as a result of the fraud as might have been expected … Continue reading

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Filed under Fraud, Remedies

Supreme Court holds that a settlement may be set aside for fraud even if fraud was suspected

The Supreme Court has held unanimously that, where a party seeks to set aside a settlement agreement on the grounds that it was induced to enter into it by its opponent's fraudulent misrepresentations, it will not necessarily be a bar … Continue reading

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Filed under Fraud, Settlement

Court of Appeal rejects illegality defence in claim against liquidator

The Court of Appeal has refused to allow a liquidator of a company that was the vehicle for a VAT fraud to rely on the defence of illegality in defending a claim for breach of duty under section 212 of … Continue reading

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Filed under Fraud, Miscellaneous

Privy Council confirms availability of backward tracing

“Happy is he who can trace effects to their causes”, Virgil observed. Well, victims of fraud will certainly be happy with the Privy Council’s decision in The Federal Republic of Brazil v Durant International Corporation (Jersey) [2015] UKPC 35. In … Continue reading

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Court of Appeal refuses to set aside settlement agreement despite new evidence of fraud

The Court of Appeal has refused to set aside a settlement agreement on the basis of new evidence indicating that the claimant’s case had been fraudulently exaggerated:  Hayward v Zurich Insurance Co plc [2015] EWCA Civ 327. Settlement agreements may … Continue reading

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Filed under Fraud, Settlement

Supreme Court confirms company in liquidation not prevented from claiming against directors on the basis of fraud attributable to the company

The Supreme Court has unanimously upheld a Court of Appeal decision refusing to strike out a claim by a “one-man” company in liquidation, which had been the vehicle for a VAT fraud, against its former directors and overseas suppliers alleged … Continue reading

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Filed under Fraud, Tort

Court of Appeal clarifies jurisdiction to order disclosure in support of freezing injunctions

Very often, when seeking to obtain a freezing injunction, the true extent of the defendant’s assets is unclear. Complex and opaque offshore corporate or trust structures may mask the true ownership of assets. A mere connection between a defendant and … Continue reading

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Filed under Fraud, Injunctions

Herbert Smith Freehills fraud bulletin published

Our trusts, fraud and asset tracing group has published its bi-annual fraud update, which includes the following articles: Freezing injunctions: whose assets are covered? A view from Hong Kong: top court looks at attribution of knowledge of fraudulent acts by directors to a company Supreme … Continue reading

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Filed under Announcements, Fraud

Supreme Court corrects “wrong turn” in English law, holding that bribes received by an agent are held on trust for the principal

Who is the rightful owner of a bribe? Is a bribe or secret commission received by an agent “held on trust” for his principal? Or is the principal’s claim against the agent a personal one for equitable compensation equal to … Continue reading

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Court of Appeal confirms account of profits available as remedy for dishonest assistance

Some, if not quite born trustees, are appointed as such at the outset of a trust. Some achieve trusteeship at some later stage. And some have some aspects of trusteeship thrust upon them. Within this third category are strangers to … Continue reading

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